Exam 53: Aging, Social Security and Health Care

Many doctors, lawyers, and economists opine that an existence of a legal market for human organs will help cure their chronic shortage that is gripping transplant medicine.

Which of the following is a myth about social security?

The figure given below shows the demand (D)and supply (S₁ and S₂)curves of medical care. Figure 32.2 Refer to Figure 32.1.The possible reason behind the shift of the supply curve from S₁ to S₂ is:

The elderly support ratio recorded by the U.S.Bureau of the Census in 1985 is expected to rise post 2005 because:

The social security system in the United States, which covers both social security and hospital insurance is financed by a:

The bulk of the cost of hospital care is borne by third-parties.Such third-parties are:

Why are black markets for human organs less efficient than free markets?

The American Medical Association's payment system is an example of a:

One way in which the U.S.government can reduce the deficit in the social security fund is by lowering the social security tax rate.

"Rising health care costs might be considered a vicious circle.As health care costs rise, people want more, and this drives up demand, which in turn increases health care costs." What is wrong with this statement?

In the context of the hospitals in the United States, which of the following statements is correct?

Why is health care considered to be an economic good and is subject to the laws of economics?

The ratio of workers to social security beneficiaries has declined from 16.5 in 1950 to about 3 in 2010 and is expected to decline to 2 by 2030.This trend indicates that:

The figure given below represents demand for and supply of hospital beds in Anytown, U.S.A. , as shown by curves D and S₁ in the following figure.If the hospital receives permission to expand, its new supply curve will be S₂.Price level P₁ is the fixed prospective payment reimbursement rate paid by Medicare to the hospital, regardless of actual cost. Figure 32.3 According to Figure 32.3, the surplus of beds caused by the fixed reimbursement rate, after the expansion of the hospital is the difference between _____ and _____.

The money raised from the social security taxes is used:

The existence of new drugs reduces the demand for drugs as they are highly expensive.

Which of the following can increase the price of medical care even if the demand for medical care remains constant?

The following figure shows the demand (D)and supply (S)curves of human organs Figure 32.5 In Figure 32.5, the equilibrium quantity of human organs in the market is:

Why does the demand curve for human organs tend to be relatively price inelastic?

The high cost of hospital care in the U.S.is primarily attributable to: